FINRA Panel Orders Raymond James to Pay Back Linn Energy Investor

A FINRA arbitration panel ordered Raymond James Financial Services, Inc. (CRD# 6694), Inc. to pay back its customer for investments losses in Linn Energy LLC in March 2017.

The claimant in the FINRA arbitration alleged the investment in Linn Energy was unsuitable and, among other claims, Raymond James failed to supervise its broker, John S. MacGowan (CRD# 315901).

MacGowan is based out of Raymond James’ New York, New York branch and has been employed by Raymond James since 1999.

When it comes to Linn Energy, Raymond James & Associates, Inc. (CRD# 705) was one of its biggest fans.  Raymond James helped the companies, Linn Energy and LinnCo, create a market and was an underwriter for many of its offerings.  This includes Linn Energy’s initial public offering in 2006, LinnCo’s initial public offering in 2012, and an additional public offering of Linn Energy in 2015.

Throughout the life of Linn Energy and its subsidiaries, Raymond James has steadily been an ally of the company.  For the last five years, Kevin Smith, Raymond James analyst and current senior vice president of the Houston, Texas branch, produced very positive ratings for Linn Energy.  For years, Smith kept a “Strong Buy” rating on Linn Energy despite other analysts’ caution.  After sticking with the gradually-declining company, Smith finally downgraded Linn Energy but only to “Outperform.”

Smith continues to become more bullish on oil and gas securities and master limited partnerships (“MLPs”), according to Barron’s, despite the rollercoaster the oil commodity has been on over the past few years.  This is also despite other reputable analysts, such as Citigroup Global Markets Inc. (CRD# 7059), remaining cautious.

Linn Energy filed for chapter 11 bankruptcy in May 2016, the largest master limited partnership (“MLP”) bankruptcy ever at with $8.3 billion in debt.  In late February 2017, Linn Energy emerged from bankruptcy as two separate private companies.  Shareholders were left with almost nothing.

Currently, our lawyers are investigating, amongst others, senior vice president of the Boca Raton, Florida Raymond James branch Martin L. Waldman (CRD# 4566228), also known as “Skip,” for unsuitable recommendations in the oil and gas industry in addition to MacGowan.  Additionally, our attorneys have already filed claims against Raymond James alleging securities violations regarding Linn Energy and the oil and gas industry.

If you have lost money investing in oil and gas related securities with Raymond James or any other broker-dealer, contact us.  Our lawyers have litigated hundreds of cases through FINRA arbitration and won millions of dollars on behalf of aggrieved investors.  Our lawyers represent investors nationwide in securities cases and FINRA arbitration to recover investment losses.  There is no fee unless we recover money for you.

For more information about the law firms, the lawyers, and our oil and gas investment practice area, please visit our website at  Contact Scott L. Silver at (800) 975-4345 for a free, confidential consultation.

Contact Information